Correctly Match Each Event with the Appropriate Expenditure Classification

question 43

Multiple Choice

Correctly match each event with the appropriate expenditure classification. Unless specifically stated otherwise, assume all amounts have been incurred. If the event is not an expenditure, state how the event would be reported in the current year General Fund financial statements. Each classification of expenditure may be used once, more than once, or not at all.
-Capital lease interest payment.

• A)Expenditures - Operating
• B)Expenditures - Intergovernmental
• C)Expenditures - Capital Outlay
• D)Expenditures - Debt Service Principal
• E)Expenditures - Debt Service Interest
• F)Not a General Fund expenditure
• G)Event reduces expenditure (also identify which of above expenditures would be reduced)

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Definitions:

Taxable Income

The portion of income subject to tax by the government after all deductions and exemptions.

Federal Receipts

The total income received by the federal government from various sources, including income taxes, corporate taxes, social security taxes, and customs duties.

Individual Income Tax

A tax levied by governments on the income earned by individuals, varying according to income level and filing status.

Federal Government Spending

Expenditure by the federal government on goods, services, and transfers to individuals and other governmental units.